You can also rank each overhead item from most effective to least and draw the cutoff at the point you consider acceptable.This same standard should be applied to many activities not traditionally recognized as overhead.You’ve been a good manager of a large department for some time now. No matter what the reason, though, an important question hangs over every cost-cutting effort: “Are we cutting enough—or too much? Overhead should be incurred for only three purposes—to enable your direct activities, increase their effectiveness, or lay the groundwork for growth.” Expressed more fundamentally: “What’s the right level of overhead? And each kind of overhead should be held to a different standard. When it comes to overhead that enables your direct activities—expenses associated with being a public company, basic payroll functions, financial control, and so on—you should determine how much cost your product must bear as a result of those activities (two dollars per pizza, or 40% of net sales, or 110% of direct product costs).Our experience shows that administrative cost-reduction opportunities follow similar patterns virtually everywhere. Unless cost cutting is new to the company, you’ve already done away with most discretionary, comfort, and non-mission-critical perks and activities, such as holiday parties, event tickets, and tuition reimbursement.The lessons we’ve gleaned may not solve your entire problem, but they should give you a substantial jump on it. If that’s the case, don’t try to eliminate more—you probably can’t. Combine activities like training days and celebrations into single events. Cross-schedule the use of outside resources, such as facilities or trainers. For example, one university determined that Parents’ Weekend and Homecoming were both far too valuable to eliminate—but found that it could save close to 40% of the combined cost by holding the two events on the same weekend.To get started, you will either need to have an active SMB network where you can transfer directly between OS X or Windows (click here for a simple PC to Mac file sharing guide), or use a hard drive that has formatted for dual compatibility between a Mac and Windows so that you can use it as a means of copying the data over.If you have other music in your Macs i Tunes directory be sure to back that up before copying over the files from the PC so you don’t accidentally overwrite any files.
We discovered that the officers devoted their freed-up time to better serving existing customers and reading up on new products—but not to phoning customers and selling (which they enjoyed least).Second, the degree of organizational disruption caused by your reductions will usually be proportional to the degree of cutting you do. After you have exhausted the common ploy of claiming cost savings by leaving vacant positions unfilled, you should restructure the jobs of any less-than-fully-busy people and confront the problem of underperformers.Therefore, you should tailor the reductions you pursue to your savings goal. You’ll find two types of less-than-fully-busy people.You’ve been ordered to reduce your department’s costs by 10%, 20%, or 30%. First, don’t expect to reach your target with a single big idea. Second, match the kinds of opportunities you examine and implement to the degree of cost reduction required.To get to 10%, go with incremental ideas that do not significantly disrupt your organization’s or department’s interactions with others.